Massimo Zanetti Beverage USA Makes Enterprise Supply Chain More Visible and Efficient with Comprehensive Trade Management Solution
 
 

Massimo Zanetti Beverage USA Makes Enterprise Supply Chain More Visible and Efficient with Comprehensive Trade Management Solution

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Massimo Zanetti Beverage USA is among the nation’s largest coffee roasters, with nationally recognized retail brands, including Chock full o’Nuts, Hills Bros., Segafredo Zanetti, MJB, and Chase & Sanborn. With its U.S. headquarters and state-of-the art manufacturing facility located in southeastern Virginia, the company produces proprietary and private label coffee, tea, and drink mixes for customers in retail and food service channels throughout North America and around the world. In addition, Massimo Zanetti Beverage USA franchises Chock full o’Nuts Coffee Shops and Segafredo Zanetti Espresso Cafés. Massimo Zanetti Beverage USA is part of the Massimo Zanetti Beverage Group, the world’s largest privately-owned coffee group that includes nearly 50 companies operating in approximately 100 countries.

To support its growing business, Massimo Zanetti Beverage USA needed to streamline operations, enhance financial performance, secure better visibility and control of its distribution lifecycle, optimize trade promotion spend, and improve demand planning.

The company deployed Oracle’s Demantra and JD Edwards EnterpriseOne applications solutions to meet its goals. Using the Oracle solutions, Massimo Zanetti has a single, scalable platform that delivers enhanced, user-friendly manufacturing, logistics, financial management, trade promotions management, and forecasting capabilities. By consolidating processes critical to its consumer packaged goods business on Oracle software, Massimo Zanetti has eliminated the cost of maintaining and hosting more than 50 pieces of standalone software, achieving a return on investment greater than 25%.

The new integrated business planning environment has also enabled Massimo Zanetti to minimize excess coffee inventory. In addition, by standardizing on a single planning tool, users now have real-time access to valuable data through an easy-to-use self-service environment, which helps them improve forecasting accuracy and decision-making. With enhanced planning capabilities and streamlined operations, Massimo Zanetti has strengthened its ability to deliver superior value to its customers.

 
 

 
 

Challenges

A word from Massimo Zanetti Beverage USA

  • “Our investment in Oracle’s Demantra and JD Edwards EnterpriseOne solutions enables us to provide superior service to our customers and brings us closer to our goal of becoming the most sought-after coffee partner in North America.” – Larry Quier, Chief Operating Officer, Massimo Zanetti Beverage USA

  • Provide better distribution lifecycle visibility and control, and improve demand planning, which is imperative for a large coffee manufacturer and distributor selling through retail and food service channels
  • Minimize excess coffee inventory and ensure more efficient trade spend management
  • Consolidate processes critical to the company’s consumer packaged goods business to reduce the cost of maintaining and hosting more than 50 pieces of standalone software
  • Streamline operations to enhance financial performance

Solutions

Oracle Product and Services

  • Used Oracle’s comprehensive trade management solution—including Oracle’s Demantra Demand Management 7.3, Demantra Predictive Trade Planning 7.3, and Demantra Trade Promotion Optimization 7.3—to expand visibility and control of its distribution lifecycle, improve demand planning, and improve financial performance
  • Increased sales volume 10% over previous year, gained market share, and improved execution by balancing supply and demand in a continuous sales and operations planning process
  • Improved sales forecast accuracy by 20%
  • Reduced coffee-related safety stock by more than 20% and increased inventory turns by 20%
  • Ensured 30% less total inventory on an increased sales volume—while maintaining 98% customer fill rates
  • Saved more than 20% on system maintenance and hosting by consolidating processes on Oracle software
  • Enabled demand and promotions planning for direct and indirect customers
  • Used a single planning tool to provide users with real-time access to demand and sales information to improve decision-making and deliver superior value to customers
  • Created a separate planning group that works to optimize fill rates and inventory and ensure efficient operations
  • Controlled trade spending with the ability to identify and prioritize the most effective promotional approaches
  • Worked with Oracle Partners brij and MetaChain Consulting to complete the implementation on time and budget, in just seven months

Why Oracle

Massimo Zanetti Beverage USA completed a competitive review of vendors—a process that looked at 23 different factors—and ultimately chose Oracle over SAP and Infor to replace its heavily customized legacy enterprise resource planning (ERP) platform and disparate demand planning point solutions. The company found that Oracle’s lower total cost of ownership, return on investment, and ease of use set it apart from other vendors.

“As a rapidly growing midsize business, it is critical that we have clear visibility into our inventory and can accurately forecast demand, ,” said Bob Ashford, vice president of information technology & planning, Massimo Zanetti Beverage USA. “We chose Oracle’s JD Edwards EnterpriseOne and Oracle’s Demantra applications over tools from SAP and Infor Software Solutions because Oracle offered the most complete, integrated, and scalable solutions to meet our complex consumer packaged goods and manufacturing needs. The quality of Oracle’s applications is the best we have ever seen.”

Demantra’s consistent ranking as the leading demand management solution for midsize manufacturing businesses was another important selection factor, according to Ashford.

“Oracle’s comprehensive trade management solution helps us to manage the entire process—from annual planning to account execution to trade optimization and settlement. It is the Swiss army knife of trade promotion software,” Ashford said.

Partner

Working with Oracle PartnerNetwork (OPN) Gold partner BRIJ and OPN Platinum partner MetaChain, Massimo Zanetti completed the implementation on time and budget, in just seven months.